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| 1 | |
What is the first step in the issuance of new securities? |
| | A) | forming an underwriting syndicate |
| | B) | filing a registration statement with the SEC |
| | C) | obtaining approval of the board of directors |
| | D) | obtaining approval under Regulation A |
| | E) | negotiating an underwriting contract |
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| 2 | |
Which of the following issues are exempt from filing a registration statement with the SEC?
I. issues that involve less than 5,000 shares of stock
II. loans that mature within nine months
III. issues less than $5.0 million
IV. issues that involve less than 1,000 shareholders |
| | A) | I and III only |
| | B) | II and IV only |
| | C) | I and IV only |
| | D) | II and III only |
| | E) | I and II only |
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| 3 | |
How many days does it take before a registration statement becomes effective assuming that the statement is acceptable to the SEC? |
| | A) | 10 |
| | B) | 15 |
| | C) | 20 |
| | D) | 25 |
| | E) | 30 |
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| 4 | |
The document that is circulated to potential investors during the registration period is called a: |
| | A) | Regulation A statement. |
| | B) | sales confirmation. |
| | C) | final prospectus. |
| | D) | tombstone. |
| | E) | red herring. |
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| 5 | |
Which of the following items are generally found in a tombstone advertisement?
I. type of security offered
II. names of underwriters
III. number of shares offered
IV. offer price per share |
| | A) | I and II only |
| | B) | III and IV only |
| | C) | I, II, and III only |
| | D) | II, III, and IV only |
| | E) | I, II, III, and IV |
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| 6 | |
What governs the security issues which qualify for the small-issues exemption? |
| | A) | final prospectus |
| | B) | SEC registration statement |
| | C) | Regulation A |
| | D) | Regulation Z |
| | E) | There is no regulation which governs issues that qualify for the small-issues exemption. |
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| 7 | |
The price at which new securities will be offered is normally set: |
| | A) | when the registration statement is filed with the SEC. |
| | B) | when the board of directors approves the offering. |
| | C) | when the sales order is received for the last unsold security in the offering. |
| | D) | shortly after the last day of the registration period. |
| | E) | on the 10th day of the registration period. |
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| 8 | |
Which of the following occur during the preunderwriting conference period?
I. formation of the underwriting syndicate
II. distribution of the preliminary prospectus
III. determination of the offering price
IV. negotiation of the underwriting contract |
| | A) | I and II only |
| | B) | III and IV only |
| | C) | II and III only |
| | D) | I and IV only |
| | E) | I, II, and IV only |
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| 9 | |
What is the maximum number of shareholders that can purchase a private issue of securities? |
| | A) | 20 |
| | B) | 25 |
| | C) | 30 |
| | D) | 35 |
| | E) | 40 |
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| 10 | |
Which one of the following involves selling new securities only to existing shareholders? |
| | A) | IPO |
| | B) | rights offer |
| | C) | general cash offer |
| | D) | seasoned new issue |
| | E) | unseasoned new issue |
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